Transmission Investment (TI), the company developing the LirIC electricity interconnector project between Scotland and Northern Ireland is extremely disappointed with Ofgem’s minded-to position, which if it were to be confirmed later in the summer 2024, would see the project denied Cap and Floor regulatory treatment in Great Britain.
Keith Morrison, Project Director for TI LirIC, said “the economic case for more interconnection between Great Britain and the single electricity market (SEM) on the Island of Ireland has been repeatedly demonstrated through multiple studies, including those published by the designated Transmission System Operators either side of the interconnector, the European Network of Transmission System Operators (ENTSO-E), the Republic of Ireland Government and TI LirIC’s own independent analysis, all of which have been scrutinised widely by key stakeholders.”
“The analysis upon which Ofgem has based its minded-to position appears to be an outlier compared to these studies. We will therefore be working to fully evaluate the analysis and formulate our response to the consultation over the coming weeks. The business case for the LirIC project remains as strong as ever and we fully expect to be able to change the minded-to position in due course.”
He added,
“TI remains fully committed to progressing the project, building on the support from stakeholders including the Department of the Economy and Utility Regulator in Northern Ireland (into ENTSO-E’s network planning process) and gathering stakeholders together to explain how the project will benefit UK citizens as a whole”.
LirIC continues to gather momentum across a wide range of activities as development of the project continues, with a consultation on the granting of a Transmission licence in Northern Ireland and finalisation of the connection arrangements with the GB and NI system operators expected in the coming months.
He concluded,
“We look forward to working with Ofgem to validate and update its assessment of the project so that it properly and fully reflects all the benefits to Great Britain and Northern Ireland including enabling the nations to support the meeting of the UK’s net zero targets.”